For the first time in almost a century, Americans may soon be able to legally bet on the outcome of elections without resorting to offshore bookmakers or office pools.

Kalshi, a betting site that allows cash wagers on real-world events, won a key victory in federal district court last Friday over the Commodity Futures Trading Commission’s ban.

Sports betting is now legal in 38 states.

The CFTC’s argument against such betting is that it could “undermine confidence in elections,” something that hasn’t been seen in Britain and other countries that allow betting on politics.

There is also economic value to allowing betting on elections. Politicians have an enormous impact on our economy. Investors, businesses and financial markets benefit from having a reliable prediction market to help determine the likelihood of political outcomes. Betting markets aren’t always right, but they are much better predictors than polls.

Federal District Judge Jia Cobb’s ruling against the CFTC was terse and clear: “The CFTC’s order exceeded its statutory authority. Kalshi’s contracts do not involve unlawful activity or gaming. They involve elections, which are neither.”